Situations when a tariff and a quota are not equivalent, International Economics

Assignment Help:

Q. Economic theory in general and trade theory in particular are replete with equivalencies. For illustration, it is argued that for any specific tariff one can search an equivalent ad valorum tariff; and that for any quota one can evaluate a tariff equivalent. Show conditions or situations under which a specific and an ad valorum tariff are not equivalent. Show conditions or situations when a tariff and a quota are not equivalent.

Answer: Example during a period of price inflation an ad valorum tariff would become increasingly more effectual. The government doesn't receive any of the quota revenues unless the import licenses are auctioned or sold.


Related Discussions:- Situations when a tariff and a quota are not equivalent

Explain cost of production in terms of world trade, Q. If scale economies ...

Q. If scale economies were not only external to firms, but were also external to individual sites. That is, the larger the worldwide industry (regardless of where plants or firms

Capital gain in high inflation economy, Hello, I rent an appartment in Braz...

Hello, I rent an appartment in Brazil, a country known for its high inflation rates, but I live in Switzerland. Does this mean when I exchange Reais to Swiss Francs (in a +- consta

Which product is the labor intensive, Q. Use the diagram below taken from ...

Q. Use the diagram below taken from Figure 4-4 to identify the pre-trade situation for Australia and Sri-Lanka. Where on the K/L axis will you search each of the two countries? W

Relative income of workers in australia as a result of trade, Q. Using the...

Q. Using the diagram, show what happens to the composition of production (that is quantity of cloth per 1 unit of food) in Australia once trade is established between the two coun

Goal of a single shared currency, Q. Why did the EU countries move away fro...

Q. Why did the EU countries move away from the EMS toward the goal of a single shared currency? Answer: 1. To produce a superior degree of European market integratio

International Economics Trade and Finance, critically evaluate Adam Smith''...

critically evaluate Adam Smith''s theory of absolute advantage,outlining the assumptions necessary for the theory to hold in its purest form.what are the criticisms of this theory

Balance of payments is always balanced, Q. "The balance of payments is alwa...

Q. "The balance of payments is always balanced." Discuss. Answer: True each international transaction automatically enters the balance of payments twice once as a debit and o

Partial equilibrium analysis, how do I graph partial equilibrium analysis w...

how do I graph partial equilibrium analysis with transport costs

Discuss the relationship between ppp and law of one price, Discuss the rela...

Discuss the relationship between PPP and the Law of One Price. Answer:  The law of one price is applies to individual commodities while Purchasing Power Parity applies to the g

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd